Good borrowers must be incentivised, and must not cross subsidise bad borrowers..

Technology started with Mass and Standard Production and we have been carrying this concept for long. The beauty of Technology with huge data, #Machine and #DeepLearning is to offer perfect fit and personalisation for Individuals.

With the kind of Digital Data we produce / have produced in past is enough to decide a Personalised #Lending Rates. Why does a #GoodBorrower has to Cross Subsidise the Bad Borrower with a somewhat same lending rate? Good Borrowers must be incentivised with better lending rates. Why is it not happening?

I can think of three factors from top of my mind ;
1. We have not been able to utilise the data and come up with an algorithms which can make it possible (I doubt on this, #FinTech s must have this thought)
2. Lending Institutions do not want to do this because of Business and Revenue logics (Somewhat Agree)
3. Regulation doesn’t allow this (I am not sure, but unlikely)

Please add more to this, and suggest if it would be better with differential rate of lending and Incentivise Good Borrowers by using data..